OREGON DEPARTMENT OF TRANSPORTATION

CONSTRUCTION MANUAL

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CHAPTER 8 – AWARD AND EXECUTION OF CONTRACT

The ODOT Procurement Office – Construction (OPO – Construction) is responsible for

Awarding ODOT Contracts. Please note that many of the activities this chapter
attributes to OPO – Construction may be the responsibility of others for Design-Build
Projects. If the Project is being procured using the Design-Build delivery method, refer
to the Design-Build Procedures Manual for the applicable award and execution process.

8-1 BID REVIEW AND PRICE ANALYSIS

Immediately after the Bid Opening, reviews for responsiveness and responsibility of the
low Bidder are conducted.

 A responsive Bid is one that meets all the requirements of the advertisement and
proposal, including Construction Contractors Board (CCB) or landscape licensing,
DBE goal, Subcontractor disclosure, Secretary of State Business Registry,
affiliations, TERO requirements, etc.

 A responsible Bidder is one who is physically organized and equipped to complete

the Contract (i.e. has available the appropriate financial, Material, Equipment, facility
and personnel resources and expertise). The review includes ODOT
Prequalification, bid bond, insurance company authorized to do business in state of
Oregon, and that the Bidders are not on the debar or disqualification lists of FHWA,
CCB, or Bureau of Labor and Industries (BOLI).

A cost analysis review is performed by the Office of Project Letting, Estimating Group,
to determine if the Bid price is the best value to the public, identify any unbalancing by
the Bidder, and to identify any issues that may cause the procurement to be considered
flawed (i.e. missing, incorrect, or poorly defined bid items, or significant quantity errors,
etc.). [Refer to Chapter 7 – Evaluation for Unbalanced Bids]

Upon completion of the cost analysis review, OPO – Construction will provide a Notice
of Intent to Award (NOIA).

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All marked text updated October 2013

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CONSTRUCTION MANUAL

8-2 CONTRACT AWARD

As specified in Subsection 00130.10, the Agency has up to 30 Calendar Days after Bid
Opening to award the Contract to the lowest responsive and responsible Bidder.

Upon expiration of the three (3) working day NOIA protest period, and award approval
by the ODOT Deputy Director, Oregon Transportation Commission (OTC), or FHWA for
full-oversight Projects, OPO – Construction notifies the successful Bidder of the Award
and sends the Contract booklets and requirements for bonds, certificates, registration
and insurance to the successful Bidder. The Bidder shall furnish the following properly
executed documents before the Agency can issue Notice to Proceed (NTP) and
execute the Contract:

(a) Performance and Payment Bonds – The Bidder shall furnish a Performance Bond
and a Payment Bond, each in the amount equal to the Contract Amount. Bonds,
except in unusual instances, remain in effect throughout the life of the Project
without further action.

(b) Copy of a Public Works Bond filed with the CCB – ORS 279C.836 requires a
Contractor or Subcontractor, before starting Work on a Contract or subcontract for a
public works project, to file with the CCB a Public Works Bond in the amount of
$30,000. The Public Works Bond is not project-specific, and remains in effect
continuously until depleted by claims, or if cancelled by the surety. The exception to
this requirement is that a person that is not required under ORS 279C.900 to

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CONSTRUCTION MANUAL

279C.870 to pay prevailing rates of wage is also not required to file a Public Works
Bond (i.e., owner-operator truck drivers, material testers, surveyors, etc.). For more
information on Public Works Bonds, and to check on the filing status for any
Contractor or Subcontractor, see the CCB website at:

https://www.oregon.gov/CCB/public-contracting/Pages/public-works-bond.aspx

(c) Coating System Warranty – If a coating system warranty is required, the value will
be shown in Subsection 00594.75 of the Special Provisions. The Bidder must submit
a supplemental warranty Performance Bond, which shall become effective upon
Second Notification and continue until the full warranty period has expired. (For
Design-Build projects, the warranty becomes effective upon issuance of Final
Second Notification.)

(d) Certificates of Insurance – The successful Bidder shall furnish the Agency with the
required certificates of insurance in the amounts specified in Subsection 00170.70 of
the Special Provisions. Insurance must be kept in effect throughout the life of the
Project, and is renewed periodically. The Contractor must not be allowed to continue
Work on the Project if the insurance has lapsed. Contact OPO – Construction if you
need assistance in renewing insurance renewal certificates.

(e) Certificates of Workers’ Compensation Coverage – The successful Bidder shall

submit the Certification of Workers’ Compensation Coverage form to certify
compliance with the Workers’ Compensation insurance coverage requirements listed
in Subsection 00170.70 of the Special Provisions.

Within seven (7) Calendar Days after the Agency has received the properly executed
Contract documents, from the successful Bidder, the Agency will execute the Contract
[See 00130.50(b)]. A fully-executed, original Contract booklet is sent to the successful
Bidder, who then officially becomes the Contractor.

8-3 NOTICE TO PROCEED (NTP)

As specified in Subsection 00130.90, the Agency has five (5) Calendar Days after the
Contract is executed to issue NTP to the Contractor. Among other things, the NTP
indicates that the Contractor has furnished the appropriate bonds and insurance and the
Contract has been executed. The PM must not allow the Contractor to start any Work
on the Project Site until OPO - Construction has issued the NTP.

As stated in Subsections 00130.80 and 00130.90, the Contractor may request an

adjustment of Contract Time if the Agency fails to perform its duties within the times
specified in the Contract and the Contractor is actually delayed as a result. [Refer to
Chapter 13 - Contract Time]

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CONSTRUCTION MANUAL

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